Ondo Finance has filed a no-action request with the U.S. Securities and Exchange Commission to determine whether recording securities rights on the Ethereum mainnet would expose the firm to enforcement actions. The filing follows the end of a two-year SEC inquiry into Ondo Finance, which concluded without charges, and seeks to explore regulatory boundaries between traditional custody and on-chain infrastructure in tokenized assets. The core issue centers on whether some rights held by BitGo in custody can be tokenized on the Ethereum mainnet without triggering enforcement. Ondo explains that the underlying securities would remain under existing legal and custodial arrangements, while on-chain records are kept alongside the official ledgers.
A no-action letter does not create new rules, but it formally confirms that a particular structure can operate without enforcement risk. This could set a reference point for the broader real-world asset tokenization market. The SEC halted its investigation into Ondo in December and has since publicly supported tokenization as a capital-market innovation. The filing emphasizes keeping existing custody arrangements while enabling on-chain records to improve processing efficiency.
Leave a Reply